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Financial Crises: Past Lessons and Policy Implications

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  • Davide Furceri
  • Annabelle Mourougane

Abstract

This overview paper examines the financial crisis in light of past country experience and economic theory and sets out some preliminary policy recommendations. A number of facets of the crisis are detailed, including its origins and spreading factors as well as crisis resolution policies and their associated gross and net fiscal costs. The implications of the crisis on key macro-economic variables are subsequently presented. Finally, policy recommendations for both addressing the economic downturn and enhancing the resilience of the economies over the medium to long-term are discussed. Crises financières : leçons du passé et implications de politiques économiques Cet article donne une vue d'ensemble de la crise financière à la lumière des expériences passées et de la théorie économique et tire des recommandations préliminaires de politiques économiques. De nombreuses facettes de la crise sont détaillées, notamment ses origines et ses facteurs de propagation, de même que les politiques de résolution de crises et leur coût budgétaire (brut et net). Les répercussions de la crise sur les variables macro-économiques clefs sont ensuite présentées. Au final, des recommandations de politiques économiques sont discutées pour à la fois répondre au retournement économique et accroître la résilience des économies sur le moyen et le long terme.

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File URL: http://dx.doi.org/10.1787/226777318564
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 668.

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Date of creation: 17 Feb 2009
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Handle: RePEc:oec:ecoaaa:668-en

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Keywords: macroeconomic policies; financial crisis; fiscal costs; politique macro-économique; crise financière; coûts budgétaires;

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Citations

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Cited by:
  1. Gloria O. Pasadilla, 2010. "Financial Crisis, Trade Finance, and SMEs : Case of Central Asia," Finance Working Papers 22924, East Asian Bureau of Economic Research.
  2. Munteanu, Ionica, 2009. "Criza financiara 2007-2008: cauze si consecinte
    [The financial crisis 2007-2008: causes and consequences]
    ," MPRA Paper 36771, University Library of Munich, Germany.
  3. International Monetary Fund, 2009. "How to Stop a Herd of Running Bears? Market Response to Policy Initiatives During the Global Financial Crisis," IMF Working Papers 09/204, International Monetary Fund.
  4. Hanappi, Hardy, 2013. "Money, Credit, Capital and the State: On the evolution of money and institutions," MPRA Paper 47166, University Library of Munich, Germany.
  5. Claessens, Stijn & Ayhan Kose, M. & Terrones, Marco E., 2010. "The global financial crisis: How similar? How different? How costly?," Journal of Asian Economics, Elsevier, vol. 21(3), pages 247-264, June.
  6. Davide Furceri & Stéphanie Guichard & Elena Rusticelli, 2011. "Episodes of Large Capital Inflows and the Likelihood of Banking and Currency Crises and Sudden Stops," OECD Economics Department Working Papers 865, OECD Publishing.
  7. Davide Furceri & Aleksandra Zdzienicka-Durand, 2010. "The Consequences of Banking Crises for Public Debt," Post-Print halshs-00497925, HAL.
  8. Silvio Contessi & Pierangelo De Pace & Massimo Guidolin, 2013. "How did the financial crisis alter the correlations of U.S. yield spreads?," Working Papers 2013-005, Federal Reserve Bank of St. Louis.
  9. Yacine Aït-Sahalia & Jochen Andritzky & Andreas Jobst & Sylwia Nowak & Natalia Tamirisa, 2010. "Market Response to Policy Initiatives during the Global Financial Crisis," NBER Working Papers 15809, National Bureau of Economic Research, Inc.
  10. Gerhardt, Maria & Lannoo, Karel, 2011. "Options for reforming deposit protection schemes in the EU," ECRI Papers 4339, Centre for European Policy Studies.
  11. J.-C. Bricongne & J.-M. Fournier & V. Lapègue & O. Monso, 2011. "From the financial crisis to the economic crisis The impact of the financial trouble of 2007-2008 on the growth of seven advanced countries," Documents de Travail de la DESE - Working Papers of the DESE, Institut National de la Statistique et des Etudes Economiques, DESE g2011-05, Institut National de la Statistique et des Etudes Economiques, DESE.

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